Business / Corporate

Six major Japanese electronics makers see net profits plummet amid U.S.-China trade war

JIJI

Six of seven major Japanese electronics makers suffered year-on-year drops in group net profits in April-September, according to earnings reports released Friday.

Net profit slid 1.9 percent to ¥189.2 billion at Hitachi Ltd., 14.9 percent to ¥340 billion at Sony Corp., 11.2 percent to ¥100.9 billion at Panasonic Corp., 10.8 percent to ¥91.2 billion at Mitsubishi Electric Corp., 21.5 percent to ¥63.6 billion at Fujitsu Ltd. and 33.1 percent to ¥27.3 billion at Sharp Corp.

Five of the six, excluding Sony, also reported operating profit falls for the first half of fiscal 2019 due to impacts from trade friction between the United States and China, among other factors.

At Sony, operating profit rose 17.3 percent to ¥509.8 billion, the highest level for the first half of the year, backed by robust sales of image sensors.

NEC Corp. saw its net profit grow by over threefold to ¥29.1 billion and operating profit grow to ¥46.8 billion, thanks to job cuts and other structural reform measures implemented in fiscal 2018.

Hitachi, Sony, Panasonic and Mitsubishi Electric revised down their sales estimates for the full year to March 2020 on the back of concerns over a global economic slowdown reflecting the U.S.-China row and a higher yen stemming from the narrowing gaps between Japanese and overseas interest rates.

“There are a lot of uncertainties, and the situation will require close attention going forward,” Sharp Executive Vice President Katsuaki Nomura told a news conference Friday.

“As the outlook is uncertain, we will accelerate fixed cost cuts and other measures on the assumption that our sales will not recover dramatically,” Hitachi Senior Vice President Mitsuaki Nishiyama said at a news conference Wednesday.

Fujitsu, whose domestic information technology-related services are performing well, revised up its full-year sales estimate.

GET THE BEST OF THE JAPAN TIMES
IN FIVE EASY PIECES WITH TAKE 5